Commodity Trading Tips for Mustard Seed by KediaCommodity

Ajay Kumar Kedia 10 July 2014

Mustardseed Rmseed settled down -0.51% at 3535 tracking bearishness in the edible oil complex and weak demand for mustard. In Rajasthan total arrivals are at 80000 Bags, unchanged as compared to previous day’s arrival. In Kota sources reported arrivals at 3000 Bags, up by 500 Bags as compared to previous day. On the domestic front, data from the Solvent Extractors’ Association of India shows that the sowing area under mustard seed has increased to 71.38 lakh hectare for the 2013-14 crop year, up 5.8 per cent from the previous year. However, the third advance production estimate from the Department of Agriculture reveals that in 2013-14, mustard seed production would drop to 78.29 lakh tonnes, down by 2.5 per cent compared with the year earlier. According to data from the US Department of Agriculture, the global production of mustard seed in 2014-15 is expected to drop by 3.4 per cent to 68.64 million tonnes from 71 million tonnes a year ago. World rapeseed output may fall to 68.59 million tons from 69.73 million tons, with Canada’s expected crop slipping to 15.8 million tons from 17.96 million. European Union rapeseed output is seen climbing to 22.42 million tons from 21.23 million tons. Export projections for the crop was pushed up in the wake of such large harvests, but harsh weather coupled with heavy rail congestion on key lines across Canada and the northern United States slowed the flow of rapeseed early in 2014. Technically market is under fresh selling as market has witnessed gain in open interest by 3.06% to settled at 94210 while prices down -18 rupee, now Rmseed is getting support at 3519 and below same could see a test of 3501 level, And resistance is now likely to be seen at 3559, a move above could see prices testing 3581.